California Court of Appeal

Health Net, Inc. v. RLI Insurance Co., B224884

In an insured's suit against four of its insurers seeking a declaratory judgment that the insurers had a duty to defend and indemnify it in certain lawsuits, the trial court's grant of summary adjudication to the insurers is reversed with respect to the insured's claim for reimbursement of its defense costs and the costs of settling the underlying actions, where: 1) there was a potential for coverage for some of the claims asserted in the underlying actions; and 2) although it appeared that the policies' dishonest acts exclusion was triggered with respect to the underlying actions, the exclusion barred coverage only for those claims alleging dishonest acts, not the entirety of the underlying actions.

Appellate Information

Decided 05/22/2012

Published 05/22/2012

Judges

Croskey

Court

California Court of Appeal

Counsel

For Appellant:

Covington &amp; Burling, Sedgwick, Detert, Moran &amp; Arnold

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